2 Top Dividend Stocks to Buy in December

You shouldn't buy a dividend stock just for its yield, but some companies combine attractive payouts with long-term tailwinds. One of the companies on this list will likely reach a $1 trillion valuation in 2026, while the other may achieve the same feat by 2030.

Strong revenue growth and long-term catalysts are two core themes for these stocks, but investors are more excited about what these stocks will turn into over the next five years. They are two of the best dividend stocks to buy in December.

Walmart is heading to a $1 trillion market cap

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Walmart (NYSE: WMT) is the world's largest retailer, and that comes with significant scaling and pricing advantages. Each store becomes the go-to place for groceries, toys, school supplies, and everything in between.

While some investors worried that Amazon (NASDAQ: AMZN) would hurt Walmart, the global retailer is making significant gains in e-commerce. The company's e-commerce segment grew by 27% year-over-year in the recent quarter, with its physical locations continuing to play a major role.

Each Walmart store acts as a storage facility for e-commerce orders. Customers can pick up items from the store or have them delivered. Walmart's vast retail footprint is a significant advantage for its e-commerce operations, with one location within 10 miles of 90% of the U.S. population. This proximity makes Walmart one of the most convenient and affordable e-commerce options.

Walmart doesn't have as many revenue streams as Amazon. It doesn't have cloud computing, streaming, or AI chips, but Walmart is growing its ad segment, which is critical for profit margin expansion. The retailer's global advertising sales surged by 53% year-over-year in the recent quarter.

Advertising is still a small part of the overall business, but Walmart's profit margins should surge as this segment grows. Walmart stock recently passed a $900 billion market cap, giving it a realistic shot of becoming a $1 trillion company in 2026, as that's an 11% jump.

Qualcomm's AI chips make the stock look like a bargain

Qualcomm (NASDAQ: QCOM) investors have watched other semiconductor stocks ride the AI wave. A five-year return just above 10% doesn't sound exciting when looking at stocks like Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD).

However, Qualcomm may soon have its time in the sun, much to the delight of patient investors. The company announced that it is working on its own AI chips, which can compete with Nvidia and AMD chips. AI chips are the hottest semiconductors right now, and Qualcomm's entry into the market can result in billions of additional dollars every quarter.

Qualcomm's AI200 chips are scheduled to go on sale in 2026, while its AI250 chips will be available in 2027. Tech giants have already shown a willingness to use AI chips from other brands instead of relying exclusively on Nvidia, so that bodes well for Qualcomm.

The release windows of Qualcomm's AI chips and parabolic spending in the industry suggest material financial gains are possible in 2026. The stock isn't pricing in that scenario yet, and it currently offers a 2% yield. That type of yield is hard to find for AI chipmakers, and chances are Qualcomm's yield won't be this high for long.

Qualcomm might be one of the last chances to get a high-yield AI growth stock. The tech giant has been producing chips for decades, and it's easy to see the company penetrating part of the AI chip market once its chips are available.

The chipmaker is still achieving respectable growth rates without AI chips. Revenue increased by 10% year-over-year in the fourth quarter of its fiscal 2025, with fiscal 2025 revenue as a whole up by 14% year-over-year. That's a good baseline leading into the launch of Qualcomm's AI chips.

Qualcomm's market cap is approaching $200 billion. If it becomes yet another AI chipmaker with a $1 trillion valuation -- and I think it could in the coming years -- the current price represents an opportunity.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Nvidia, Qualcomm, and Walmart. The Motley Fool has a disclosure policy.